With the demise of cap-and-trade proposals, opponents of GHG regulation are apparently renewing their efforts to strip EPA of its existing authority to regulate GHGs.  Sen. Lisa Murkowski (R-AK) is contemplating offering an amendment to delay EPA climate regulations for two years.  The amendment would be to a small business package originally introduced by Sen. Jay Rockefeller (D-WV) that is currently pending in the Senate.  This amendment would prevent EPA from regulating GHGs from stationary sources, such as power plants and refineries, for two years.  In the absence of such an amendment, EPA would begin limiting GHGs from the largest new and modified stationary sources beginning in January 2011.

Senate Democrats have just concluded a meeting at which they have decided against moving forward with a comprehensive climate change package that would have been based on a cap-and-trade program.  Instead they have shifted their focus to an energy package, which will include a response to the Gulf oil spill. 

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Sens. Kerry(D-MA) and Lieberman(I-CT), co-authors of “The American Power Act,” released the Environmental Protection Agency’s analysis of the legislation. Kerry and Lieberman believe that the analysis will help move the bill forward. Kerry said, “This model confirms what we have known all along, and what Senator Lieberman and I have been saying to you would be the final result of this legislation. A well-designed climate change and energy legislation is good for American consumers.” The analysis states that the legislation would cost households $80-$150 annually over the next 40 years, with household energy bills decreasing through 2030. The analysis also indicates that the legislation would create jobs and reduce consumer energy prices.

The Department of Energy announced an agreement with NRG Energy to build a carbon capture and storage demonstration project. The Parish Post-Combustion CO2 Capture and Sequestration project will capture and store up to 400,000 tons of CO2 per year. The project will take place at the W.A. Parish Generating Station in Thompson, Texas. The project will employ Fluor’s Econamine FG Plus capture technology and it will capture 90 percent of its CO2 emissions. The project will have a total cost of $334 million, with the DOE picking up 50 percent of the price tag, and the project is expected to begin sequestration in 2014 and come to an end in 2017.

The Senate voted today 53-47 to block Sen. Murkowski's (R-AK) resolution that would have effectively vetoed the EPA's endangerment finding and eliminated the agency's authority to meaningfully address climate change under the Clean Air Act.  The vote, which was expected to be very close, proved to be just that.  To shoot the resolution down, Democratic leadership made deals with some moderate Democrats to have a vote at a later date on legislation that would limit EPA's authority to regulate greenhouse gas emissions rather than eliminate it.

As the Senate returns from the Memorial Day recess, it promises to be a busy week that will dictate how climate and energy legislation will move forward in the Senate.

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Sen. Lisa Murkowski’s (R-AK) draft resolution, which would effectively negate EPA’s endangerment finding, is scheduled to reach the Senate floor for a June 10 vote.  The amendment essentially vetoes the finding, which would, in turn, revoke much of EPA’s existing authority to regulate carbon dioxide emissions.

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Yesterday, the EPA issued a final rule known as the "Tailoring Rule."  The purpose of the Tailoring Rule is to mitigate the economic and permitting consequences that could otherwise flow from the joint EPA/DOT rulemaking that will limit GHG emissions from vehicles.  Nonetheless, the Tailoring Rule is significant because, according to its terms, the largest stationary source GHG emitters in the nation—such as power plants, refineries, and cement production facilities—will have GHG reduction obligations beginning in 2011.

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Sens. Kerry (D-MA) and Lieberman (I-CT) introduced their climate legislation, the “American Power Act,” this afternoon.  The pair worked closely with Sen. Graham (R-SC) on the legislation, but, due to other current political issues, he refrained from taking part in introducing the bill.  The senators also worked closely with industry to put together a bill that is intended to have the best chance of moving forward. 

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The Senate climate bill put together by Sens. Kerry (D-MA), Lieberman (I-CT) and Graham (R-SC) will be introduced tomorrow at a 1:30 p.m. press conference.  All indications point to just Sens. Kerry and Lieberman introducing the bill, as Graham will remain disengaged because of debate over immigration reform. 

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